State Tax Day - Current, S.9, Tennessee—Sales and Use, Miscellaneous Taxes: Counties Authorized to Provide Natural Disaster Tax Relief for Displaced Residents, (Jun 1, 2026)

A Tennessee county that has declared a state of local emergency or is subject to a state of emergency or disaster declaration is authorized to provide tax relief to individuals displaced from their homes as a result of the emergency or disaster. The tax relief applies to the local occupancy tax and various other local taxes that may apply to renting an accommodation. A county can implement the tax relief either by resolution from the county legislative body or through an executive order from the county executive.

A county may provide the tax relief in the form of an occupancy tax waiver at the point of sale or reimbursement to the customer of taxes paid for renting the accommodation. A county may also authorize reimbursement for taxes paid by residents for lodging in an adjoining county if there is a limited vacancy within their home county. The relief period is limited to 14 days.

Ch. 979 (S.B. 2504), Laws 2026, effective May 19, 2026; Notice 26-11, Tennessee Department of Revenue, May 2026